The Speed of Adjustment and the Sequencing of Economic Reforms: Issues and Guidelines for Policymakers

By Saleh M. Nsouli, Mounir Rached, Norbert Funke

August 1, 2002

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Format: Chicago

Saleh M. Nsouli, Mounir Rached, and Norbert Funke. The Speed of Adjustment and the Sequencing of Economic Reforms: Issues and Guidelines for Policymakers, (USA: International Monetary Fund, 2002) accessed September 18, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

This paper reviews the issues involved in determining the appropriate speed of adjustment and the sequencing of economic reforms, focusing on considerations relevant to policymakers. It points out that the debate between the protagonists of a high-speed approach and those favoring a gradualist approach is based primarily on the weights given to adjustment costs, policy credibility, reform feasibility, and risk assessment. It underscores the importance of appropriate sequencing and the impact of sequencing on the speed of adjustment and reforms. The paper concludes by highlighting factors that policymakers should consider when selecting their approach toward speed and sequencing.

Subject: Balance of payments, Capital account, Capital account liberalization, Economic sectors, International trade, Privatization, Tariffs, Taxes, Trade barriers

Keywords: Adjustment, Adjustment cost, Capital account, Capital account liberalization, Central and Eastern Europe, Eastern Europe, Financial asset, Government, Government monopoly, Government objective, Government reform, Liberalization, Liberalization of the capital account, Liberalization process, Market economy, Price liberalization, Private ownership, Privatization, Public enterprise, Rate of inflation, Reform program, Reforms, Sequencing, Speed of adjustment, Tariffs, Trade, Trade barriers, WP

Publication Details

Pages:

37
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2002/132
Stock No:

WPIEA1322002
ISBN:

9781451855395
ISSN:

1018-5941

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